When a sales credit note is generated the effect on the sales ledger is as follows:
The outstanding balance on the account is reduced by the total including tax, unless a payment adjustment is also updated where it would be unaffected.
The turnover figure on the account is reduced by the total excluding tax.
The last transaction date for the account is updated
The cost figures for the account are reduced
The debtor control total is reduced by the credit note total including tax, unless also marked as paid, in which case the total remains the same.
A credit note transaction is written to the transaction file, followed by an analysis line for each detail line.
A payment adjustment transaction is written to the file if the credit note is marked as paid (which you may do if the credit is for a cancelled invoice that was paid)
If stock is updated, the following occurs for each stock item:
The current stock level is increased by the quantity credited.
Period and year demand figures are reduced by the quantity invoiced.
Period and year sales values are reduced by the line total excluding tax.
Period and year cost values are reduced
The last transaction date is updated
A sales issue (with negative quantity) is written to the transaction file.
If job costing is updated the following occurs:
The amount invoiced on the job is reduced by the total excluding tax.
An ‘invoiced’ transaction is written to the job transactions file with a negative valueArticle ID: 923
Created On: Tue, Jun 26, 2012 at 3:12 PM
Last Updated On: Mon, Jun 12, 2023 at 7:50 PM
Online URL: https://kb.datafile.co.uk/article/sales-credit-notes-file-updating-and-ledger-controls-923.html